Comparative analysis of risk grading model between NBFI & bank

Abstract

The study aims to assess the Risk Grading Models of IDLC Finance Limited and BRAC Bank Limited. IDLC Finance Limited is committed to sustainable practices and strong financial performance. Risk grading Model refers to the measures taken to mitigate the amount of defaults. Having considered the significance of credit risk grading, it becomes imperative for every Financial Institutes to carefully develop a credit risk grading model. As different types of organizations serve different purposes, they make their own custom made models that best fit their requirements. This study accentuates the differences and counsels for a better version.